@MPiling wrote:
Hi, so... definitely a hobby... but if I'm seeing this right, it looks like I'm not allowed to deduct ANY expenses AT ALL? So, I cannot even include the cost basis... as in, what I paid for the watch first before I sold it?
In some cases, I might have paid $55 for a watch, and sold for $275... but now I'm required to claim all $275 as income even though I spent $55?
Thanks... just want to double-check.
Sale of personal property is a capital gains transaction and you can subtract your basis. You can probably also subtract costs of selling (like listing fees) since they technically reduce the selling price. You would report the sales on Schedule D for capital gains transactions.
